Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 

Can I claim costs associated with running a business if I did not make any sales or income? The first year was spent developing the product.

 
1 Reply

Can I claim costs associated with running a business if I did not make any sales or income? The first year was spent developing the product.

You can claim them as losses against profits made from other businesses, or against income from employment.  The IRS understands that it takes time to develop a business.  If you have no profit for more than three years, you will be considered having a hobby and not a business.